My philosophy is that it is hard, but not impossible, to beat the market, and that it is easy, and imperative, to save on taxes and money management costs. I graduated from Harvard in 1973 with a degree in linguistics and applied math. I have been a journalist for 40 years, and was editor of Forbes magazine from 1999 to 2010. Tax law is a frequent subject in my articles. I have been an Enrolled Agent since 1979. You can email me at --williambaldwinfinance -- at -- gmail -- dot -- com.

Twelve Ways To Beat College Debt

This works if you are aiming for the state university and it allows credits to be transferred from a two-year program or junior college.

Joshua Nicholas, 24, got a bachelor’s degree from the University of Delaware using a variation on this strategy. Admitted to the main campus in Newark, Del., he opted to spend his freshman and sophomore years taking university classes at Delaware Technical & Community College. He finished at the main campus. But his tuition for the first two years was at the much lower rate available to state residents getting two-year degrees.

Nicholas says he got out of college with only $20,000 of debt, a third as much as what his roommate in Newark owed, and has paid almost all of it off.

2. Scope out the tax subsidies.

There are a dozen on federal returns, they entail insane variations in rules and definitions, and you almost need a Ph.D. to understand them all. But it’s worthwhile to figure out in advance which ones you or your parents may qualify for. There are deductions for tuition and loan interest, exemptions for investment income and credits (dollar-for-dollar reductions in tax bills) for various education expenses. The income ceilings for eligibility are all over the lot.

If your parents are self-employed they may be able to lump their income (alternating high and low years) in such a way as to qualify for more tax benefits. If their income is too high to ever qualify, you may be able to take some of the benefits on your own tax return by providing more than half of your own support. That would mean working hard (see strategy No. 6) and keeping costs down (see Nos. 1, 8 and 9).

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